CY-05-089, Decommissioning Funding Assurance

Decommissioning Funding Assurance

ML050960433
Person / Time
Site:	Haddam Neck File:Connecticut Yankee Atomic Power Co icon.png
Issue date:	03/31/2005
From:	Gerard van Noordennen Connecticut Yankee Atomic Power Co
To:	Document Control Desk, NRC/FSME
References
CY-05-089
Download: ML050960433 (3)

Text

CONNECTICUT YANKEE ATOMIC POWER COMPANY HADDAM NECK PLANT 362 INJUN HOLLOW ROAD

• EAST HAMPTON, CT 06424-3099 MAR 3 1 2005 Docket No. 50-213 CY-05-089 Re: 10 CFR 50.75(f)

U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555 Haddam Neck Plant Decommissioning Funding Assurance In accordance with 10 CFR 50.75(f), this letter provides information on the status of decommissioning funding for the Haddam Neck Plant. Attachment 1 provides the requested information.

In December of 2003, Connecticut Yankee Atomic Power Company (CYAPCO) updated its site-specific decommissioning cost estimate to incorporate the most recent assumptions with respect to the remaining decommissioning activities and related costs. CYAPCO filed an update to the decommissioning cost estimates together with updated decommissioning charges to the wholesale purchasers, with the.Federal Energy Regulatory Commission (FERC) on July 1, 2004 to seek the required revenue. The FERC Chief Judge has set the schedule for the hearing of the CYAPCO rate proceeding to commence on June 1, 2005.

The 2003 cost estimate will supersede the April, 2000 cost estimate that was filed with FERC on April 7, 2000, as supplemented April 27, 2000 (Docket No. ER97-913-001).

As of January 1, 2003, the remaining cost to complete NRC required decommissioning activities, based on the updated decommissioning cost estimates, is $170.7 million. The $170.7 million is comprised of $106.2 million for dismantlement and decontamination, and $64.5 million for radioactive waste.

If you should have any questions, please contact me at (860) 267-3938.

Sincerely,

___ 3-31-0S Gerard P. van Noordennen- Date Regulatory Affairs Manager Attachment I -

cc:, S. J. Collins, Region I Administrator T. B. Smith, NRC Senior Project Manager, X.R. R. Bellamy, Chief, Decommissioning and Laboratory Branch Region i-,

E. L. Wilds, Jr., Director, CT DEP, Monitoring and Radiation Division

Attachment I to CY-05-089, page 1 of 2 NRC Decommissioning Fundinq Status Report Connecticut Yankee - Haddam Neck Plant (Status as of 12/31104)

The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c). $ 325.6 million(1)

The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c)<2) $ 48.6 million A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c).

Amount remaining $ 551.7 million(3 )

1. Years to collect 6.0 years The assumptions used regarding escalation in decommissioning cost, rates of earnings on decommissioning funds, and rates of other factors used in funding projections; As part of its July 1,2004 filing with FERC (Docket No.ER04-981-000), the Company, beginning February 1,2005 under FERC Order Issued August 30, 2004 (subject to refund), has increased its decommissioning accruals to an annual rate of $93.0 million, continuing through 2010. This revised annual accrual is based on an annual 4.1 percent decommissioning cost escalation rate for costs subject to escalation and a 4.9 percent after-tax return on the trust funds.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50. 75(e)(1)(ii)(A);

Certification was provided in August 2004 to certify the obligation of each wholesale purchaser from CYAPCO to be responsible for its share of the HNP decommissioning

--costs pursuant to the terms -of the CYAPCO Power Contracts with each of its purchasers, which contracts have been filed as FERC approved rates.

() NUREG-1307 Revision 10, Report on Waste Burial Charges.

(2) The amounts collected (market value) in the Trust are for all decommissioning costs including site restoration, long term spent fuel storage and pre-1983 spent fuel disposal costs as well as decommissioning as defined in 10 CFR 50.2.

(3) CYAPCO has increased decommissioning collections to an annual rate of $93.0 million effective February 1, 2005 subject to refund pending the outcome of its FERC rate case.

U. S. Nuclear Regulatory Commission CY-04-089 / Attachment 1 /Page 2 Any modifications to a licensee's current method of providing financial assurance occurring since the last submitted report.

There were no modifications to the current method of providing financial assurance since the last submitted report.

Any material changes to trust agreements.

There were no material changes to trust agreements in calendar year 2004.